{"id":4170,"date":"2023-11-06T18:15:49","date_gmt":"2023-11-06T12:45:49","guid":{"rendered":"https:\/\/ksrini.life\/journal\/?p=4170"},"modified":"2023-12-26T15:44:24","modified_gmt":"2023-12-26T10:14:24","slug":"leadership-how-ceos-can-lead-selflessly-through-a-crisis","status":"publish","type":"post","link":"https:\/\/ksrini.life\/journal\/leadership-how-ceos-can-lead-selflessly-through-a-crisis\/","title":{"rendered":"Leadership-How CEOs Can Lead Selflessly Through a Crisis"},"content":{"rendered":"\r\n

You might think that crises tend to bring out the worst in people, but that isn\u2019t reflected in how we view our leaders, at least. In fact, crises cause us to\u00a0view leaders as more charismatic\u00a0and effective than we normally do. This is probably why U.S.\u00a0presidents\u00a0are almost universally re-elected in times of war. And research has shown that leaders who self-sacrifice tend to be seen as the most effective.<\/p>\r\n\r\n\r\n\r\n

Following 9\/11, I was so intrigued by crisis leadership that I did a study on the topic. In my research I\u00a0found\u00a0that leader self-sacrifice, such as cutting one\u2019s own salary or giving up one\u2019s own benefits, caused employees to feel more positively toward their leaders and more committed to their organizations during crises. This finding has been corroborated by additional research in the\u00a0lab and field\u00a0that suggests that when leaders demonstrate self-sacrificial behavior, it makes us see them as having higher moral values and as being a better role model \u2014 leading to better organizational outcomes.<\/p>\r\n\r\n\r\n\r\n

So, what can leaders do in this time to support their employees and how can they be sure that their giving hits the mark? Effective measures fall into three categories: taking some of the same hits as your staff; giving with a larger purpose in mind; and being aggressively transparent even when it\u2019s hard.<\/p>\r\n\r\n\r\n\r\n

Take a hit.<\/strong><\/h3>\r\n\r\n\r\n\r\n

Self-sacrifice is not just about the company doing what\u2019s right. If you are going to ask your employees to sacrifice, you need to sacrifice as well. If you expect your team to behave safely, you as a leader should behave safely. If you expect your team to get down in the trenches, you should be down there with them. No one likes the leader who throws their team on the front line while they sit in their office.<\/p>\r\n\r\n\r\n\r\n

Marriott International\u00a0CEO Arne Sorenson, forfeited his salary for the year and is\u00a0donating hotel rooms\u00a0to front-line workers to help fight Covid-19. Marriot also asked its executives to sacrifice half of their salaries and has been furloughed many other employees. As a result, Marriot is still viewed \u2013\u00a0at least in the media\u00a0\u2014 as an employer of choice despite its need to furlough employees.<\/p>\r\n\r\n\r\n\r\n

Other companies whose top leaders have cut their salaries include\u00a0NBCUniversal,\u00a0Uber,\u00a0Delta, and\u00a0Yelp. In my own field of academia, highly paid deans, coaches, and administrators at top universities like\u00a0Harvard\u00a0are taking pay cuts to help make up for the impending deficits that higher education is facing. Even world leaders, like\u00a0Jacinda Arden, New Zealand\u2019s prime minister, are taking pay cuts.<\/p>\r\n\r\n\r\n\r\n

Not all of us are CEOs who can make the decision to keep people\u2019s paychecks coming or give up our salary for a year. But there are still ways to sacrifice for our employees. Small gestures like ordering lunch to be sent remotely to your employees for a team zoom meeting can go a long way at maintaining the morale of the team. If your organization has a\u00a0leave donation program, you can donate some of your time off to your team members who need it.<\/p>\r\n\r\n\r\n\r\n

When you\u2019re a leader, sacrificing along with your employees could mean that they will be more committed to staying with the company during and after the crisis. And, considering the cost of employee turnover, this could mean the difference between recovering from the Covid-19 crisis \u2014 or not.<\/p>\r\n\r\n\r\n\r\n

Give with purpose.<\/strong><\/h3>\r\n\r\n\r\n\r\n

Many organizations are offering free services like free virtual tours or free learning tools\u00a0for kids. Likewise, we have seen organizations step up to help provide resources needed to combat the effects of the pandemic.\u00a0\u00a0Tesla, Toyota, Ford and GM\u00a0have shut down factories to make ventilators while\u00a0Medtronic\u00a0openly shared the software and specifications for their portable ventilators, allowing anyone to use them for free to help create ventilators in response to Covid-19.<\/p>\r\n\r\n\r\n\r\n

But, whatever the give, it is important to tie the sacrifice to vision, mission, and the values of your organization so that people can understand why you are doing it. When Salesforce co-CEO Marc Benioff\u00a0pledged\u00a0not to do any layoffs for the next three months, he tied it to the cultural value of Ohana (family) and giving, asking that employees also continue to support the people they relied on before the crisis, such as house cleaners or dog walkers. Leaders should be clear about how their actions are consistent with the organization\u2019s values.<\/p>\r\n\r\n\r\n\r\n

If that purpose isn\u2019t clear, there can be backlash.\u00a0Research shows\u00a0that we are a skeptical bunch and when leaders self-sacrifice, we try to infer\u00a0why<\/em>\u00a0the leader might be doing it or focus on what they are not doing (like whether or not the leaders are keeping their\u00a0bonuses). The more cynical among us might infer that Johnson & Johnson\u2019s decision to invest a billion dollars to develop a Covid-19 vaccine was driven by profit. But, when CEO\u00a0Alex Gorsky\u00a0tied the act to their responsibility to improve the health of people and they\u00a0announced\u00a0that they would provide the vaccine on a not-for-profit basis, the doubt turns to admiration.<\/p>\r\n\r\n\r\n\r\n

Be aggressively transparent.<\/strong><\/h3>\r\n\r\n\r\n\r\n

In addition to explaining why they are making a sacrifice, leaders should be transparent about what that sacrifice amounts to. If a leader publicly donates 10% of her salary to a nonprofit, she should explain what the nonprofit is and what exactly is happening to the money.<\/p>\r\n\r\n\r\n\r\n

For example, Jack Dorsey is donating $1 billion of his Square equity (28% of his wealth) to fund Covid-19 relief. Not only is he giving away the money; he also shared a\u00a0Google Doc\u00a0showing how the funds would be spent.<\/p>\r\n\r\n\r\n\r\n

Voluntary transparency becomes key in this situation.\u00a0Disney\u2019s\u00a0CEO Bob Chapek is forgoing 50% of his salary and other benefits as a result of Covid-19. But this decision came after pressure from the\u00a0union\u00a0for some information from leadership over concerns about the closing of Disney parks.<\/p>\r\n\r\n\r\n\r\n

Even when we are not in a crisis, 84% of employees think organizations are\u00a0not doing enough\u00a0to create transparency. But this comes at a cost to the organization.\u00a0One study\u00a0showed that organizations that were more transparent had higher productivity, innovation, and retention than those that were more opaque. In contrast, increasing transparency can in fact build\u00a0trust.<\/p>\r\n\r\n\r\n\r\n

Crises create the opportunity for leaders to provide direction, meaning, and support when followers need it the most. Learning that\u00a0Columbia\u00a0Sportswear CEO Tim Boyle reduced his salary to $10,000 while continuing to pay its employees or that\u00a0Yum Brands\u00a0CEO, David Gibbs, gave up his salary and gave $1,000 bonuses to the managers of his restaurants does more than lift the spirits of their employees. These various strains of research indicate that this type of sacrifice can improve morale and trust for the rest of us, and ease the pain the rest of us are feeling in this time.<\/p>\r\n\r\n\r\n\r\n

By Stefanie K. Johnson<\/p>\r\n","protected":false},"excerpt":{"rendered":"

You might think that crises tend to bring out the worst in people, but that isn\u2019t reflected in how we view our leaders, at least. In fact, crises cause us to\u00a0view leaders as more charismatic\u00a0and effective than we normally do. This is probably why U.S.\u00a0presidents\u00a0are almost universally re-elected in times of war. And research has<\/p>\n","protected":false},"author":1,"featured_media":4206,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[310],"tags":[549,508,503,562,534,511,516],"class_list":["post-4170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-whats-trending","tag-gratitude","tag-leadership","tag-monkmindset","tag-sacrifice","tag-selfless","tag-seva","tag-tyaag","enable-dropcap","disable-2-columns"],"yoast_head":"\nLeadership-How CEOs Can Lead Selflessly Through a Crisis - ksrini Journal<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ksrini.life\/journal\/leadership-how-ceos-can-lead-selflessly-through-a-crisis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Leadership-How CEOs Can Lead Selflessly Through a Crisis - ksrini Journal\" \/>\n<meta property=\"og:description\" content=\"You might think that crises tend to bring out the worst in people, but that isn\u2019t reflected in how we view our leaders, at least. 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